Pancontinental Uranium Corporation

Pancontinental Uranium Corporation

June 23, 2008 11:14 ET

Pancontinental Uranium Enters Into Uranium Joint Venture in Burkina Faso

TORONTO, ONTARIO--(Marketwire - June 23, 2008) - Pancontinental Uranium Corporation ("Pancon" or the "Company")(TSX VENTURE:PUC) is pleased to announce that its subsidiary, Crosscontinental Uranium Limited ("Crosscontinental"), has signed a Joint Venture Agreement (the "Agreement") with Southern Cross Exploration NL ("Southern Cross") and Longreach Oil Limited ("Longreach Oil") on the Oursi uranium project in Burkina Faso, West Africa. Crosscontinental is a private Canadian company equally owned by Pancon and Crossland Uranium Mines Limited ("Crossland"), established to explore for uranium outside of Australia.

The Oursi project consists of two permits granted for uranium exploration in northeastern Burkina Faso held by Southern Cross (and Longreach Oil indirectly), namely "Tin Dioulaf" and "Agalsa" (collectively, the "Permits").

Crosscontinental will be the manager and operator of the Joint Venture.

Essential terms of the Agreement are summarized as follows:

- Crosscontinental can earn up to a 35% interest in the Permits by spending AUD$150,000 which includes reimbursement of some acquisition costs and the completion of a detailed airborne geophysical survey within the first nine months of the Agreement. These are the minimum commitment requirements before Crosscontinental can withdraw from the Joint Venture. If Crosscontinental does not meet the minimum commitment requirements, then it will have no interest in the Permits.

- Crosscontinental can increase its interest to 50% upon the completion of spending a further AUD$400,000 within the first three years of the Agreement.

- If Crosscontinental increases its interest to 50%, Southern Cross and Longreach Oil can elect separately to participate in further expenditures with their respective 37.5% and 12.5% interests ("Participating Interest"). Crosscontinental's interest can increase to 80% if Southern Cross and Longreach Oil elect separately to reduce their respective interests to 15% and 5% ("Non-participating Interest"). Each scenario is free carried to the definition of a JORC-compliant Resource, completion of a favourable bankable feasibility study and a Decision to Mine.

- At the Decision to Mine, Southern Cross and Longreach Oil can elect separately to either participate in further expenditure in proportion to its Participating or Non-participating Interest or convert its interest to an NSR (1.5% for Southern Cross and 0.5% for Longreach Oil).

The Oursi project tenements cover a combined area of 500 square kilometres and include a 50 kilometre strike length of an unconformity structure that is considered to be prospective for uranium deposits. A known uranium mineralization occurrence is located 50 kilometres along strike and west of the Oursi tenements. It is intended that the project will be operated by Crosscontinental Burkina Sarl, a wholly-owned subsidiary of Crosscontinental. Initial aerial inspection of the title has been completed. There is no existing detailed airborne radiometric survey coverage over the area and Crosscontinental is currently seeking a contractor to undertake a survey covering the tenements. This survey is expected to commence as soon as a suitable contractor has been engaged, necessary approvals are in place and weather permits.

Burkina Faso is a West African republic that has favourable settings for certain types of uranium deposits and has not been intensively explored in the past. Crosscontinental has applied for additional permits in prospective areas.

About Pancontinental Uranium Corporation

Pancontinental Uranium Corporation ("Pancon") is a Canadian-based company focused on uranium discovery and development. Through a joint venture with Crossland Uranium Mines Limited ("Crossland") of Australia, Pancon has established one of the strongest management teams in the uranium industry. This management and operating team has unparalleled experience from exploration, through development to operations, and includes people who were instrumental in the discovery of two of the largest uranium deposits in the world. Pancon holds an impressive exploration portfolio with projects in prolific, mining friendly districts. Active exploration is ongoing at four Australian projects which include Chilling, Charley Creek, Kalabity and Crossland Creek. The Chilling project has the potential to host a mirror image of a portion of the renowned Alligator Rivers Uranium Field containing the large Jabiluka, Ranger and Koongarra deposits. Pancon is earning a 50% interest in this significant uranium project portfolio through the joint venture with Crossland through the expenditure of A$8 million. Pancon and Crossland are also pursuing exploration beyond Australia through international subsidiary company, Crosscontinental Uranium Limited, and immediate plans include formulating an exploration program in Burkina Faso.

Qualified Person

The exploration activities and results contained in this report are based on information compiled by Geoffrey S. Eupene, CP., a Fellow of the Australasian Institute of Mining and Metallurgy. Mr. Eupene is the designated Qualified Person for the joint venture exploration activity. He is a director of Pancon and Crossland and is a full time employee of Eupene Exploration Enterprises Pty. Ltd. Mr. Eupene has reviewed this press release.

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Contact Information

  • Pancontinental Uranium Corporation
    Richard Mark
    President and CEO
    (604) 986-2020 or 1-866-816-0118
    (604) 986-2021 (FAX)
    Pancontinental Uranium Corporation
    Ashleigh Meyer
    Manager, Investor Relations
    (416) 867-8073